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2025 Supreme(Raj) 1675

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
MANINDRA MOHAN SHRIVASTAVA, C.J., MUNNURI LAXMAN, J.
Rajendra Kumar Son of Shri Rampat - Appellant
Versus
The State of Rajasthan - Respondent 
D.B. Spl. Appl. Writ No. 321/2023, D.B. Spl. Appl. Writ No. 267/2023
Decided on : 28-02-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr. Ankur Mathur, Mr. Vivek Mathur
For the Respondent: Mr. Girish Kumar Sankhla

The court upheld the validity of the Liquor Policy prohibiting public servants from holding liquor licences, affirming the State's authority to impose such conditions in public interest.

Headnote:

(A) Rajasthan Excise Act, 1950 - Sections 31, 34, 41, and 72 - Liquor Policy 2022-23 - Cancellation of liquor licence - Appellant's licence was cancelled on grounds of ineligibility due to public office holding - Court held that the policy is valid and within statutory powers, emphasizing that public servants should not hold liquor licences. (Paras 10, 15, 33)

(B) Public Interest - The policy prohibiting public servants from holding liquor licences is based on sound public policy to prevent conflicts of interest. (Paras 30, 33)

Facts of the case:
The appellant, a Nagar Parshad, had his liquor licence cancelled for allegedly suppressing his public office status during the auction process. The cancellation was based on the Liquor Policy 2022-23, which deemed public servants ineligible for such licences.

Findings of Court:
The court upheld the cancellation of the appellant's licence, affirming the legality of the policy and the authority of the State to impose such conditions.

Issues: The main issues were the validity of the Liquor Policy's eligibility criteria and whether the cancellation of the licence was justified.

Ratio Decidendi: The court reasoned that the State has the authority to impose additional restrictions on liquor licences, and the policy serves public interest by preventing public servants from engaging in liquor trade.

Result: Appeal dismissed.

JUDGMENT :

(PER HON’BLE THE CHIEF JUSTICE):

This common order shall govern disposal of the aforesaid two appeals.

2. The Special Appeal Writ No. 267/2023 [Rajendra Kumar Vs. The State of Rajasthan & Ors.] is directed against the order dated 19.01.2023 passed by the learned Single Judge in S.B. Civil Writ Petition No. 11550/2022, by which, the learned Single Judge has dismissed the writ petition in the matter of challenge to cancellation of the licence for selling country made liquor and in the matter of challenge to validity of Clause 13 of the Liquor Policy 2022-23 of the State Government promulgated vide order dated 05.02.2022.

3. As the issue raised in both the petitions is one and the same, on the basis of the order passed in S.B. Civil Writ Petition No. 11550/2022, the second writ petition registered as S.B. Civil Writ Petition No.11065/2022 between the same parties has also been dismissed vide order dated 19.01.2023.

4. Since the main order has been passed in S.B. Civil Writ Petition No. 11550/2022, we shall refer to the impugned order dated 19.01.2023 passed therein as also the pleadings and documents in that writ petition.

5. Petitioner-Rajendra Kumar filed petition aggrieved by the order dated 04.08.2022 passed by the District Excise Officer, Hanumangarh, whereby, his licence for selling country made liquor, issued in his favour, was cancelled. While filing the writ petition, the petitioner also laid challenge to the validity of Clause 13 of the Liquor Policy 2022-23 promulgated by State Government vide order dated 05.02.2022.

6. The averments necessary for decision of this appeal are that the writ petitioner/appellant is a Nagar Parshad (Lok Sevak) in Hanumangarh. He participated in auction proceedings for allotment of liquor shop and being a successful bidder, was issued a liquor licence for a period of one year commencing from 01.04.2022. However, before expiry of the period of licence, a show cause notice was issued to him on 07.07.2022 proposing to cancel the licence of liquor shop allotted to him on the allegation that as per the Liquor Policy for the year 2022-23, promulgated vide order dated 05.02.2022, on the eligibility conditions incorporated therein that a person in service of the State Government or Central Government or Local Bodies or in any other Government or Semi-Government institution or a public servant, would not be eligible for grant of licence. It was also stated in the notice that as per the terms and conditions of e- auction, if an ineligible person participates in the auction and if any licence is granted to him, his licence will be liable to be cancelled upon receipt of information regarding ineligibility and all deposits made by him shall be liable to be confiscated. The report dated 04.07.2022 of the Excise Inspector, Circle Hanumangarh contained information regarding the appellant having been found to be elected as Parshad of Ward No.57. It was alleged that the appellant obtained licence by suppressing the fact.

7. In response to the notice, appellant vide representation dated 20.07.2022, informed that Parshad (Corporator) does not fall in the category of public servant nor holds an office of profit but he is a public representative and he does not derive any profit or remuneration from the State.

8. However, vide impugned order dated 04.08.2022, the licence was cancelled holding that the appellant was ineligible for grant of liquor licence.

9. Aggrieved by the order, the appellant preferred the writ petition. The writ petition, however, was dismissed giving rise to this appeal.

10. Learned counsel for the appellant argued that in absence of there being any ineligibility under the provisions of the Excise Act or Rules framed thereunder, it is wholly impermissible to lay down the conditions of ineligibility by way of policy. It is submitted that the Liquor Policy of 2022-23, promulgated vide order dated 05.02.2022, could not amend the eligibility criteria as prescribed under the Acts and Rules, inasm

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